Are you thinking about buying a home in Kent, Washington in 2017 or 2018? If so, you might want to consider making your move sooner rather than later.
Recent predictions and forecasts for the Kent, Washington housing market suggest that home values will continue rising at a steady pace through 2017 and into 2018. This means that those buyers who take a “wait-and-see” approach could end up paying more for a home.
Real Estate Forecast for Kent, Washington
A recent housing market forecast for Kent, issued by the real estate research team at Zillow, predicted that the median home price in the city would rise by 6.5% over the next 12 months. This outlook was issued in July 2017, so it extends into the summer of 2018.
Related: A bold outlook for Seattle prices
Over the previous 12 months, home values in Kent, Washington rose by a whopping 11.3% – well above the national average during that same period.
According to the latest estimates, the median home value in Kent is now around $360,000. But it might not stay at that level for long. If these forecasts and predictions are accurate, house prices in the area will continue to rise over the coming months. So home buyers who postpone their purchases until later in 2017, or shelve them until 2018, could very well encounter higher housing costs.
Above-Average Home Price Gains
Real estate markets across the Seattle metro area, including Kent, have been outpacing the nation over the last couple of years. Home prices in the area have risen well above national averages, and this is largely the result of a skewed supply and demand situation.
In short, there just aren’t enough homes listed for sale to satisfy the current level of demand. While the inventory crunch is most pronounced in Seattle proper, it is also affecting the surrounding real estate markets like Kent, Washington.
Residential real estate construction could ramp up in the surrounding areas over the coming months and years, and this would help strike a better balance between supply and demand. But that’s over the horizon. For the rest of 2017, and into 2018, the forecast for the Kent housing market calls for steadily rising prices due to strong demand and limited supply.
Population Growth Driving Demand for Housing
Population growth is a factor here as well. According to data collected by the United States Census Bureau, the population of Kent, Washington grew from 61,800 people in 1990, to 125,560 in 2014. So it more than doubled during that 24-year period.
The Seattle metro area remains a popular attraction for those who are relocating from elsewhere in the state and across the country. These immigration patterns bring more home buyers into the local real estate market, increasing demand at a time when supply is limited. Home prices tend to rise under such conditions.
This is largely what’s driving the positive forecast for the Kent real estate market in 2018. Annual home-price appreciation in Kent is expected to be double the national average over the next 12 months, according to recent housing predictions.
Mortgage Rates Expected to Creep Upward
In its latest finance forecast, the Mortgage Bankers Association estimated that the average rate for a 30-year fixed home loan would rise to 4.4% by the fourth quarter of this year. Looking beyond that, they expect 30-year mortgage rates to average 4.7% by the first quarter of 2018.
Related: Mortgage rate outlook for Washington
Granted, these are just for housing forecasts and projections. They are the equivalent of an educated guess. So you probably shouldn’t “bank” on the. But it’s helpful to know what the experts are thinking. And with the general consensus being that both home prices and mortgage rates could continue rising, a case could be made for buying a home sooner rather than later.
Disclaimer: This article includes predictions and forecasts for the Kent, Washington housing market in 2017 through 2018. These outlooks were provided by third parties not associated with our company. We have presented them here as an educational service to our readers.
Have questions? Sammamish Mortgage is a local, family-owned company based in Bellevue, Washington. We currently lend in all of Washington, Oregon, Idaho and Colorado. Please contact us if you have mortgage-related questions.